Solution-Estimate the incremental inventory holding costs

Estimate the incremental inventory holding costs

Assignment Help Supply Chain Management

Reference no: EM133386414

Questions

1. Determine the exact shipping costs for cards outsourced to China (replacing the assumption of one-half cent per card).

2. Estimate the incremental inventory holding costs for the volumes you recommend outsourcing (assumptions: 10% inventory cost, 12 weeks of additional lead time)

3. Evaluate the likely supply chain risks associated with outsourcing to China: quality/reliability, lead times, predictability, supplier relationships/management, etc.

4. Evaluate the business strategy implications of outsourcing cards to China: importance to the company of the product and process, intellectual property concerns, image/reputation, etc.

5. What is your overall sourcing recommendation, taking into account: economics, supply chain risks and strategic implications.

Reference no: EM133386414

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Estimate the incremental inventory holding costs

Reference no: EM133386414

Reference no: EM133386414

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